After a period of economic slowdown and cautious investment, 2025 is shaping up to be a breakthrough year for Southern Europe’s property market. Spain and Portugal are once again at the forefront, attracting international buyers with a combination of affordability, lifestyle, and strong rental returns.
🇵🇹 Portugal: Still a Hotspot, Even After Visa Reforms
Despite changes to the Golden Visa program in 2023, demand for property in Portugal continues to soar. Lisbon, Porto, and coastal towns in the Algarve remain top choices for both investors and expats.
What’s driving the demand:
- Strong tourism recovery post-COVID
- High-quality healthcare and digital nomad-friendly policies
- Growing tech and startup scene in Lisbon
- Safe, walkable cities with a relaxed lifestyle
2025 Update:
- Average price per m² in Lisbon: €4,800
- Rental yields in Lisbon and Porto: 5–6% annually
- New eco-condo developments in Cascais are 80% sold out pre-construction
🇪🇸 Spain: A Comeback in the Making
Spain’s property market is bouncing back—especially in regions like Costa del Sol, Valencia, and Madrid. A combination of low interest rates and high foreign demand is reviving the housing sector.
Key 2025 trends:
- Surge in UK and German buyers returning post-Brexit
- High interest in newly built “energy-efficient” homes
- Marbella and Malaga seeing luxury apartment sales rise by 12% YoY
New Development Spotlight:
- Costa Azure Villas in Alicante: a smart, gated community with solar integration, private pools, and direct beach access. Over 60% of Phase 1 sold by Q2 2025.
🧠 Final Thoughts
Southern Europe is proving it can offer both a Mediterranean lifestyle and serious investment opportunities. With global demand rising, now may be the perfect time to explore property options in Portugal and Spain—before prices climb further.
